Watching Gap Inc.

Posted on October 18, 2005 , filed under Stocks | Print This Post

I’m watching GPS, Gap Inc. The company operates as a specialty retailing company. It offers casual apparel, accessories, and personal care products under the Gap, Banana Republic, and Old Navy brands.

I like GPS at under $15. The stock is currently trading at $16.11. The price of the stock has been driven down by downgrades, a slump in same store sales and concerns over competition from discount retailers WMT, Wal-Mart and TGT, Target.

Gap has a strong record of revitalizing same store sales by launching innovative marketing campaigns. Some of you may remember Gap’s use of Swing music to promote its Khaki’s or signing up Missy Elliot to promote the brand. There are many positive points for GAP’s future. Cash is strong, the company has announced a new designer for its GAP brand, and the company will launch a new line of clothing targeted at women 30 and above.

I will continue to watch the stock before posting my analysis and price targets.

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